Exhibit 99.1

Teradyne Reports 96 Percent Increase in 2010 Sales; Raises Outlook for First Quarter

NORTH READING, Mass. – January 26, 2011 – Teradyne, Inc. (NYSE: TER) reported revenue of $322 million for the fourth quarter of 2010 of which $262 million was in Semiconductor Test and $60 million in Systems Test Group. On a non-GAAP basis, Teradyne’s net income in the fourth quarter was $71.0 million, or $0.37 per diluted share, which excluded acquired intangible asset amortization, non-cash convertible debt interest, and restructuring and other charges. GAAP net income for the fourth quarter was $60.1 million, or $0.27 per diluted share.

Bookings in the fourth quarter of 2010 were $355 million of which $286 million were in Semiconductor Test and $69 million in Systems Test Group.

For fiscal year 2010, revenue was $1.6 billion. Net income for the year was $422.4 million or $2.20 per share on a non-GAAP basis. The GAAP net income was $379.7 million or $1.73 per share. Bookings for the year were $1.8 billion.

Guidance for the first quarter of 2011 is revenue of $350 million to $375 million, with non-GAAP net income per diluted share of $0.33 to $0.39 and GAAP net income per diluted share of $0.26 to $0.31. Non-GAAP guidance excludes acquired intangible asset amortization, non-cash convertible debt interest, and restructuring and other charges.

“The fourth quarter capped a tremendous 2010 in which we doubled our revenue, generated the highest profit rate and free cash flow in our history, delivered the highest EPS in ten years, and expanded our System-on-a-Chip (SOC) test market share,” said Mike Bradley, Teradyne President and CEO. “We’ve raised our revenue and earnings guidance for the first quarter based on an improving near-term outlook from our customers and positive trends in electronic end markets.”

Webcast

A conference call to discuss the fourth quarter and fiscal year 2010 results, along with management’s business outlook is scheduled at 10 a.m. EST, Thursday, January 27. The call will be broadcast simultaneously over the Internet. Interested investors should access the webcast at www.teradyne.com and click on “Investors” at least five minutes before the call begins.

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A replay will be available approximately two hours after the completion of the call. The replay number in the U.S. & Canada is 800-642-1687. The replay number outside the U.S. & Canada is 706-645-9291. The pass code for both numbers is 37501331. A replay will also be available on the Teradyne website www.teradyne.com. Click on “Investors” for a link to the replay. The replay will be available via phone and website through February 13, 2011.

Non-GAAP Results

In addition to disclosing results that are determined in accordance with GAAP, Teradyne also discloses non-GAAP results of operations that exclude certain income items and charges. These results are provided as a complement to results provided in accordance with GAAP. Non-GAAP income/(loss) from operations and non-GAAP net income/(loss) exclude goodwill impairment, in-process research and development, non- cash convertible debt interest, write-off of credit line debt issue costs, restructuring and other, net, fair value inventory step-up related to Nextest and Eagle Test, (losses)/gains on marketable securities and acquired intangible asset amortization, as well as applicable adjustments to profit sharing (prior to January 1, 2010) and income taxes due to these exclusions. GAAP requires that these items be included in determining income/(loss) from operations and net income/(loss). Non-GAAP income/(loss) from operations, non-GAAP net income/(loss), non-GAAP income/(loss) from operations and non-GAAP net income/(loss) as a percentage of revenue, and non-GAAP net income/(loss) per share are non-GAAP measures presented to provide meaningful supplemental information regarding Teradyne’s baseline performance before gains, losses or other charges that may not be indicative of Teradyne’s current core business or future outlook. These non-GAAP measures are used to make operational decisions, to determine employee compensation, to forecast future operational results, and for comparison with Teradyne’s business plan, historical operating results and the operating results of Teradyne’s competitors. Non-GAAP gross margin excludes charges related to the fair value inventory step-up recorded as part of acquisition purchase accounting. GAAP requires that this item be included in determining gross margin. Non-GAAP gross margin dollar amount and percentage are non-GAAP measures that management believes provide useful supplemental information for management and the investor. Management uses non-GAAP gross margin as a performance measure for Teradyne’s current core business and future outlook and for comparison with Teradyne’s business plan, historical gross margin results and the gross margin results of Teradyne’s competitors. Non-GAAP diluted shares include the impact of Teradyne’s call option on its shares. Management believes each of these non-GAAP measures provides useful supplemental information for investors, allowing greater transparency to the information used by management in its operational decision making and in the review of Teradyne’s financial and operational performance, as well as facilitating meaningful comparisons of Teradyne’s results in the current period compared with those in prior and future periods. A reconciliation of each available GAAP to non-GAAP financial measure discussed in this press release is contained in the attached exhibits and on the Teradyne website at www.teradyne.com by clicking on “Investors” and then selecting the “GAAP to Non-GAAP Reconciliation” link. The presentation of non-GAAP measures is not meant to be considered in isolation, as a substitute for, or superior to, financial measures or information provided in accordance with GAAP.

About Teradyne

Teradyne (NYSE:TER) is the leading supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense

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industries. In 2010, Teradyne had sales of $1.6 billion and employs about 3,000 people worldwide. For more information, visit www.teradyne.com. Teradyne(R) is a registered trademark of Teradyne, Inc. in the U.S. and other countries.

Safe Harbor Statement

This release contains forward-looking statements regarding future business prospects, Teradyne’s results of operations and market conditions. Such statements are based on the current assumptions and expectations of Teradyne’s management and are neither promises nor guarantees of future performance. You can identify these forward-looking statements based on the context of the statements and by the fact that they use words such as “will,” “anticipate,” “expect,” “project,” “intend,” “plan,” “believe,” “target” and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. There can be no assurance that management’s estimates of Teradyne’s future results or other forward looking statements will be achieved. Important factors that could cause actual results to differ materially from those presently expected include: conditions affecting the markets in which Teradyne operates; decreased or delayed product demand; and other events, factors and risks disclosed in filings with the SEC, including, but not limited to, the “Risk Factors” section of Teradyne’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and Quarterly Report on Form 10-Q for the period ended October 3, 2010. The forward-looking statements provided by Teradyne in this press release represent management’s views as of the date of this release. Teradyne anticipates that subsequent events and developments may cause management’s views to change. However, while Teradyne may elect to update these forward-looking statements at some point in the future, Teradyne specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Teradyne’s views as of any date subsequent to the date of this release.

TERADYNE, INC. REPORT FOR FOURTH QUARTER OF 2010

CONDENSED CONSOLIDATED OPERATING STATEMENTS

(In thousands, except per share amounts)

CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)

GAAP to Non-GAAP Earnings Reconciliation

(In millions, except per share amounts)